Legal Question in Landlord & Tenant Law in California

termination of option of lease renewal upon sale of building

I have a client with a building occupied by two tenants, one has an option to purchase and the other has options to renew their lease. The tenant wants to enact their option to purchase, but wants the other tenant to vacate upon their tenancy ending. The other tenant wants to stay and use their lease-renewal option. If we sell the building, is the tenant with the lease-renewal option still able to exercise that option, or is it null upon us selling the building to the other tenant? There are no provisions in the contract regarding what happens to either options regarding change of ownership of the the building.


Asked on 11/18/03, 2:21 pm

1 Answer from Attorneys

Ken Koenen Koenen & Tokunaga, P.C.

Re: termination of option of lease renewal upon sale of building

Someone who purchases property with tenants must also accept the terms of whatever lease or rental agreement they have, unless there is a provision in their lease to the contrary.

Based upon the info you have provided, and not having read the lease agreement, my initial opinion would be that the tenant can still exercise his renewal option.

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Answered on 11/18/03, 2:30 pm


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